The British Columbia strata insurance market remains buyer-friendly and favourable heading into 2026. Insurers are posting strong results and actively competing for business, driving competitive pricing across the board. As a result, many have experienced premium reductions compared to prior years, with multiple insurers still showing a strong appetite for strata risks.

This positive momentum is expected to continue into 2026, following rate relief seen throughout 2025. Property insurance rates are anticipated to remain favourable through the first half of the year, with conditions likely stabilizing as the year progresses.

Property rates are down, along with premiums for directors and officers (D&O), equipment breakdown, ARAG legal protection and excess crime coverage. Insurers have also expanded volunteer accident coverage to age 85.

While competition and capacity remain strong, insurers continue to be selective. Some underwriting factors, such as geographic concentration and catastrophic loss exposure, are outside a strata corporation’s control. As a result, properties in higher-risk locations may still face tighter terms or higher pricing despite broader market softening.

Controlling what you can

Smart strata corporations don't wait for favourable market conditions. By managing what they can control, they build financial resilience that endures through any cycle. These practices prove to insurers you're a well-managed risk:

Strong communication and transparent submissions

  • Treat your insurance broker as a strategic partner and trusted resource
  • Provide clear, accurate and up-to-date information
  • Flag material changes immediately – don't wait for renewal

Transparency helps insurers assess risk accurately, which translates to more competitive pricing and consistent coverage.

Claims management and loss prevention

  • Track how claims drive premiums and deductibles
  • Analyze loss trends to eliminate root causes
  • Use risk assessments to address exposures before they become claims

TIP: When reviewing claims history, consider categorizing losses to help identify patterns:

  • Occupant-related losses (human action)
  • Maintenance-related losses
  • Weather-related losses

Your broker can provide support through claims coordination, insurer negotiations, claims analysis and targeted risk assessments that strengthen loss control and reduce exposure.

Water loss prevention and emergency planning

Water damage drives the majority of strata claims. Clean loss histories consistently earn better rates.

Reduce severity by maintaining a comprehensive water incident response plan with after-hours contacts and clear resident instructions on who to call and what to do during a water emergency.

Regular maintenance schedules

Plan it. Schedule it. Document it. Reactive maintenance costs more.

Effective maintenance extends beyond plumbing, roofing and life-safety systems. It includes robust budgeting, contingency planning, current depreciation reports, strong administrative practices and appropriate coverage limits and deductibles. Maintain the building and the financial framework that support it.

Strata corporations that take a holistic approach – physical, financial and administrative – are better positioned to reduce claims, manage risk and achieve more stable insurance outcomes over the long term.

TIP: Does your strata council have a maintenance calendar? A structured, forward-looking plan supports stronger long-term outcomes.

Valuations and appraisals

Keep insurance appraisals current. They establish total insurable value (TIV) – the estimated cost to rebuild after a total loss – and demonstrate fiduciary responsibility under the BC Strata Property Act. 

Risks of outdated appraisals:

  • Owners cover shortfalls after total losses, delaying rebuilds and creating financial strain.
  • Governance exposure. Coverage gaps increase dispute risk and potential D&O claims against councils.
  • Co-insurance penalties. Policies may force strata corporations to self-insure portions of replacement costs.

Rising labour and material costs drive rebuilding expenses and claim payouts higher. While current appraisals may increase insured values, they're more sustainable than transferring unexpected costs to owners after a loss.

General risk management strategies

Maintenance and communication

  • Keep depreciation reports current and use them for long-term planning
  • Encourage owners to inspect owner-responsible elements (supply lines, appliances, hot water tanks)
  • Clearly identify and communicate water shut-off locations

Water-loss prevention

  • Install leak detection alarms and automatic shutoff systems
  • Promote early detection and rapid response to minimize damage

Preparedness and claims readiness

  • Establish vendor relationships before emergencies strike
  • Document losses thoroughly – detailed records are critical for assessments and claims

Leveraging at renewal

Treat insurance performance as a controllable business metric, not a passive outcome. Build your case with current property valuations, documented safety systems and transparent maintenance records. Comprehensive data and demonstrated loss prevention efforts strengthen your negotiating position.

Partner with your broker year-round – not just at renewal – to navigate 2026 successfully.

For more information, download the HUB International 2026 Real Estate Outlook report, which provides industry insights for investors and owners regarding risk maturity, profitability, vitality, resiliency and preparedness.

Disclaimer: This article is intended to provide readers with general information only. Readers are urged not to rely solely on the content of the bulletin, but to consult with appropriate professionals on a case-by-case basis.